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PRESIDENTIAL DECREE NO. 1356
PRESIDENTIAL DECREE NO. 1356
- AMENDING Section 16 OF THE NATIONAL INTERNAL REVENUE CODE BY THE
AUTHORIZING THE COMMISSIONER OF INTERNAL REVENUE UNDER CERTAIN
CONDITIONS TO PLACE NATURAL OR JURIDICAL PERSONS UNDER SURVEILLANCE FOR
TWO MONTHS FOR THE PURPOSE OF ESTABLISHING A PRIMA FACIE BASIS FOR
ASSESSING TAXES FOR THE OTHER MONTHS OF THE SAME OR DIFFERENT TAXABLE
YEARS.
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chanroblesvirtualawlibrary
WHEREAS,
the Bureau of Internal Revenue has conducted surveillance of certain
business enterprises for a period of one to two months to determine
their true and correct income and/or receipts;chanroblesvirtualawlibrary
WHEREAS, the findings indicate rampant and flagrant nondeclarations and
under declarations resulting in substantial loss of revenue.
NOW, THEREFORE, I FERDINAND E. MARCOS, President of the Philippines, by
virtue of the powers in me vested by the Constitution, do hereby
decree:cralaw:red
Section 1. Section 16 of the National Internal
Revenue Cod, as amended, is hereby further amended to read as
follows: chanroblesvirtualawlibrary
"Sec. 16. Power of Commissioner of Internal Revenue
to make assessments. — When a report required by law as a basis for the
assessment of any national internal revenue tax shall not be
forthcoming within the time fixed by law or regulation, or when there
is reason to believe that any such report is false, incomplete, or
erroneous, the Commissioner of Internal Revenue shall assess the proper
tax on the best evidence obtainable.
"The Commissioner of Internal Revenue may place the business operations
of any person, natural or juridical, under observation or surveillance
for a period of two months to be determined under regulations to be
prescribed by the Secretary of Finance if there are reasons to believe
that such person is not declaring his correct income and receipts for
internal revenue tax purposes. The findings for this period may be used
as a basis for assessing the taxes for the other months of the same or
different taxable years and such assessment shall be considered prima
facie correct.
"When it shall come to the knowledge of the Commissioner of Internal
Revenue that a taxpayer is retiring from the business subject to
taxation, or intends to leave the Philippines, or remove his property
therefrom, or hide or conceal his property, or perform any act tending
to obstruct the proceedings for collecting the tax for the past or
current quarter or year, or render the same totally or partly
ineffective unless such proceedings are begun immediately, the
Commissioner of Internal Revenue shall declare the tax period of such
taxpayer terminated at any time and shall send the taxpayer a notice of
such decision, together with a request for the immediate payment of the
tax for the tax periods so declared terminated and the tax for the
preceding year or quarter, or such portion thereof as may be unpaid,
and said taxes shall due and payable immediately and shall be subject
to all the penalties hereafter prescribed, unless paid within the time
fixed in the request of the Commissioner of Internal
Revenue." chanroblesvirtualawlibrary
Section 2. The Secretary of Finance, upon
recommendation of the Commissioner of Internal Revenue, shall
promulgate rules and regulations to implement the provisions of this
Decree.
Section 3. This Decree shall take effect upon its
approval. chanroblesvirtualawlibrary
DONE in the City of Manila,
this 21st day of April, in the year of Our Lord, nineteen hundred and
seventy-eight.
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